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Medicare Soon Won’t Pay Hospitals for Errors

Private payers may be encouraged to adopt similiar policies of no pay for “preventable errors”

CEO SUMMARY: CMS issued new rules, effective in October 2008, that it will no longer pay the extra cost of treating patients after preventable errors, infections, or injuries that occur in hospitals. It continues Medicare’s transformation from a “passive payer simply processing claims” to an “active purchaser with a stake in quality and efficiency.” Many …

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